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Committee reviews three HHA PFC projects, $20M NOFA timing and questions on tax exemptions and unit mix
Summary
The committee heard a presentation on three PFC projects from the Houston Housing Authority, discussed HHA’s formula for proceeds and use of funds, and was briefed on a forthcoming $20 million multifamily NOFA; council members and public speakers pressed staff on developer negotiations, bedroom mixes, permitting timelines and potential long‑term tax‑exemption impacts.
The Housing & Affordability Committee considered a Public Facilities Corporation (PFC) resolution from the Houston Housing Authority covering three proposed projects and discussed a $20 million NOFA to support multifamily construction and rehabilitation.
Ryan Bibbs presented the PFC items and showed project locations and unit mixes for Allura/"Laura" Med Center (1021 Main St.), Bridal Park Row (1100 Blackhawk St.) and Orem Circle (12781 Martin Luther King Blvd.). Bibbs described 1‑, 2‑ and 3‑bedroom units with targeted affordability tiers at 60% AMI, 80% AMI and market rate.
Councilmember Ramirez and others asked whether the city’s Housing & Community Development Department participates in negotiations between the Houston Housing Authority and developers. Director Nichols said HCD reviews qualification requirements (the QBS) but is not currently engaging with individual developers and that council’s approval is the final step. Nichols recommended more HCD involvement earlier in the process: "I hope we can be a part of it going forward."
David Northern, identified in the hearing as CEO of the Houston Housing Authority, told the committee HHA applies a formula (part of its QBS) to determine the authority’s proceeds from PFC deals and that some proceeds fund ongoing investments, including a cited $48,000,000 choice‑neighborhood commitment. Outside counsel Shannon Davis Hunter said HHA has introduced an asset management fee charged to developers to fund compliance and asset management hires.
The committee was also briefed on a $20,000,000 NOFA for multifamily applicants; staff said the NOFA would publish within days and that an information session would follow. Council members raised timing concerns for applicants who have received 9% tax credits and face TDHCA application deadlines; staff said they will try to work with developers to provide documentation and letters of support when possible.
Public commenters raised two recurring concerns. Doug Smith asked why city‑built projects appear to cost more per unit than private developments and warned of large, long‑term property‑tax impacts from PFC tax exemptions. Developer Donna Rickenbacker (Emrick Companies) urged the city to prioritize NOFA scoring for projects that already received 9% tax credits and requested letters documenting award dates to help meet TDHCA deadlines.
What’s next: Staff said they will provide requested follow‑up materials (including HHA’s formula and any NOFA details) within 72 hours and will continue to coordinate with developers about meeting TDHCA timing requirements.
